DALLAS, Mar 8, 2002/ FW/ --- Attention Kmart shoppers, the blue light might be leaving your area soon.

Retail giant Kmart, who filed for Chapter 11 last January announced today that it is closing 284 stores in 40 states and Puerto Rico, which is approximately 14% of its store base.

Hardest hit is Texas which will lose 33 Kmart stores, followed by Illinois and California with 16 store closures apiece.

Charles C. Conaway, Chief Executive Officer of Kmart said on the announcement, "The decision to close these under-performing stores, which do not meet our financial requirements going forward, is an integral part of the Company's reorganization effort."

The store closures mean 22,000 job cuts, representing 9% of the company's workforce of 250,000.

Kmart anticipates that the sales generated from store closings and related cost savings will enhance its cash flow by approximately $550 million in 2002 and approximately $45 million annually thereafter.

Mark Hansen, Chairman and CEO of Fleming (NYSE: FLM), which delivers food and other consumable products to Kmart commented on the announcement, "We are pleased by today's announcement from Kmart. Based on our historical sales to Kmart, it is readily apparent that Kmart has, indeed, selected its least productive stores for closure."

Penske Auto Centers which has outlets in Kmart stores also announced today that 63 of their outlets have been affected by the closure.

The auto centers will close immediately and the majority of the approximately 300 employees impacted by the closings will be retained at remaining Penske Auto Centers.

The same day of the announcement of store closures, Kmart also received final approval for $2 Billion debtor-in-possession credit facility .